Fox Reporter Reveals Procedural Aspect That Could Delay Bitcoin ETF Approval
Fox reporter Eleanor Terrett has brought attention to a procedural aspect of the U.S. Securities and Exchange Commission (SEC) that could potentially delay the approval of a spot Bitcoin Exchange-Traded Fund (ETF). Despite there being no scheduled commission vote on the ETF, each of the five SEC commissioners has the right to request a review and a full commission vote.
SEC’s Procedural Clause
The SEC’s procedural nuance, as highlighted by Terrett, could have an impact on the eagerly awaited approval of a spot Bitcoin ETF. The current SEC commissioners are Gensler, Crenshaw, Peirce, Lizárraga, and Uyeda.
Revelation of Little-Known Clause Empowers Commissioners
In response to Anne Kelley’s tweet, Terrett revealed a little-known clause, 17 C.F.R. Section 201.431, that empowers any single SEC Commissioner to require a full commission review of a previously approved matter. This clause serves as one of the few tools available to non-chair commissioners to enhance transparency in the decision-making process at the SEC.
Analyst Expresses Confidence in Approval Process
Senior Bloomberg ETF analyst Eric Balchunas expressed confidence in the approval process under SEC Chair Gensler’s direction. Balchunas stated that he believes approval is the plan and advised against complicating the situation.
Potential for Time Extension in Approval Process
Terrett had previously expressed skepticism about an imminent spot Bitcoin ETF approval due to vacations and work overload at the SEC. She compared it to the timeline of Ethereum futures approval in October 2023, suggesting that the process might extend beyond the immediate deadline.
Meetings between SEC and Major Exchanges
Terrett mentioned that the SEC and major exchanges such as Nasdaq, CBOE, and NYSE were holding meetings regarding the spot Bitcoin ETF applications. These meetings allow issuers to address application shortcomings and move closer to approval. However, with the January 10 deadline approaching, the outcome of these meetings and the SEC’s final decision remain uncertain.
Hot Take: Will the Procedural Aspect Delay Bitcoin ETF Approval?
The revelation of the procedural aspect at the SEC raises questions about the potential delay in approving a spot Bitcoin ETF. While some analysts express confidence in the approval process under SEC Chair Gensler’s direction, others highlight the possibility of complications and extended timelines. As the crypto community eagerly awaits an ETF approval, it remains to be seen how this procedural nuance will influence the fate of a spot Bitcoin ETF.
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